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ALEXANDRIA, Va. (March 19, 2020) – The National Credit Union Administration is reminding credit union members of the safety of their deposits in federally insured credit unions. The NCUA also reminds individuals to remain vigilant against COVID-19-related scams. 

Federally insured credit unions offer a safe place for credit union members to save money. All deposits at federally insured credit unions are protected by the National Credit Union Share Insurance Fund, with deposits insured up to at least $250,000 per individual depositor. Credit union members have never lost a penny of insured savings at a federally insured credit union. Additional information on NCUA share insurance coverage for consumers is available at MyCreditUnion.gov (opens new window).

Credit union members can calculate the amount of insured funds at a federally insured credit union using NCUA’s Share Insurance Estimator (opens new window). The Estimator can be used for personal, business, or government accounts. Personal accounts include individual ownership, joint ownership, payable-on-death (accounts with named beneficiaries), living trusts, and IRAs. The Estimator also includes an extensive Glossary of Terms (opens new window) and Frequently Asked Questions (opens new window).

For questions about the NCUA’s share insurance coverage, call 1.800.755.1030, option 1, Monday through Friday, 8 a.m. to 5 p.m. Eastern, or send an email to [email protected]. 

The NCUA is also reminding individuals to remain vigilant against scams (opens new window) related to the coronavirus. Cyber actors may send emails with malicious attachments or links to fraudulent websites to trick victims into revealing sensitive information or donating to fraudulent charities or causes. Exercise caution in handling any email with a COVID-19-related subject line, attachment, or hyperlink, and be wary of social media pleas, texts, or calls related to COVID-19. Visit NCUA’s Fraud Prevention Center (opens new window) for more information about frauds and scams, including how to report a scam.

(March 12, 2020) –The Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the National Credit Union Administration, and the Tennessee Department of Financial Institutions, collectively the agencies, recognize the serious impact of tornadoes in Tennessee on the customers and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision.  The agencies encourage institutions operating in the affected areas to meet the financial services needs of their communities.

A complete list of the affected disaster areas can be found at www.fema.gov (opens new window).

Lending: Financial institutions should work constructively with borrowers in communities affected by tornadoes in Tennessee.  Prudent efforts to adjust or alter terms on existing loans in affected areas should not be subject to examiner criticism.  In supervising institutions affected by tornadoes in Tennessee, the agencies will consider the unusual circumstances these institutions face.  The agencies recognize that efforts to work with borrowers in communities under stress can be consistent with safe-and-sound practices as well as in the public interest.

Temporary Facilities: The agencies understand that many financial institutions face staffing, power, telecommunications, and other challenges in re-opening facilities after the tornadoes in Tennessee.  In cases in which operational challenges persist, the primary federal and/or state regulator will expedite, as appropriate, any request to operate temporary facilities to provide more convenient availability of services to those affected by tornadoes in Tennessee.  In most cases, a telephone notice to the primary federal and/or state regulator will suffice initially to start the approval process, with necessary written notification being submitted shortly thereafter.

Publishing Requirements: The agencies understand that the damage caused by tornadoes in Tennessee may affect compliance with publishing and other requirements for branch closings, relocations, and temporary facilities under various laws and regulations.  Institutions experiencing disaster-related difficulties in complying with any publishing or other requirements should contact their primary federal and/or state regulator.

Regulatory Reporting Requirements: Institutions affected by tornadoes in Tennessee that expect to encounter difficulty meeting the agencies’ reporting requirements should contact their primary federal and/or state regulator to discuss their situation.  The agencies do not expect to assess penalties or take other supervisory action against institutions that take reasonable and prudent steps to comply with the agencies’ regulatory reporting requirements if those institutions are unable to fully satisfy those requirements because of the effects of tornadoes in Tennessee. The agencies’ staffs stand ready to work with affected institutions that may be experiencing problems fulfilling their reporting responsibilities, taking into account each institution’s particular circumstances, including the status of its reporting and recordkeeping systems and the condition of its underlying financial records.

Community Reinvestment Act (CRA): Financial institutions may receive CRA consideration for community development loans, investments, or services that revitalize or stabilize federally designated disaster areas in their assessment areas or in the states or regions that include their assessment areas.  For additional information, institutions should review the Interagency Questions and Answers Regarding Community Reinvestment at https://www.ffiec.gov/cra/qnadoc.htm (opens new window).

Investments: The agencies realize local government projects may be negatively affected by tornadoes in Tennessee.  Institutions should monitor municipal securities and loans affected by tornadoes in Tennessee.  Appropriate monitoring and prudent efforts to stabilize such investments are encouraged.

For more information, refer to the Interagency Supervisory Examiner Guidance for Institutions Affected by a Major Disaster, which is available as follows:

CSBS:  https://www.csbs.org/interagency-supervisory-examiner-guidance-institutions-affected-major-disaster (opens new window)
FDIC:  https://www.fdic.gov/news/news/financial/2017/fil17062.html (opens new window)
FRB:  https://www.federalreserve.gov/supervisionreg/srletters/sr1714a1.pdf (opens new window)
OCC:  https://www.occ.gov/news-issuances/bulletins/2017/bulletin-2017-61.html (opens new window)
NCUA:  https://www.ncua.gov/Resources/Documents/SL-17-02-examiner-guidance-institutions-affected-major-disaster-enclosure.pdf (opens new window)

Agency	Contact	Phone
CSBS	James Kurtzke	202.728.5733
Federal Reserve	Darren Gersh	202.452.2955
FDIC	Julianne Fisher Breitbeil	202.898.6895
NCUA	Ben Hardaway	703.518.6333
OCC	Stephanie Collins	202.649.6870

ALEXANDRIA, Va. (March 10, 2020) – National Credit Union Administration Chairman Rodney E. Hood today issued a statement commemorating the agency’s 50th anniversary:

We are marking a notable anniversary for the credit union industry: 50 years ago today, on March 10, 1970, the National Credit Union Administration was established as an independent regulator of our nation’s system of cooperative credit. The creation of an independent NCUA was a significant recognition of the growing importance of federally insured credit unions within the financial ecosystem.

Today, as we honor our history, I reaffirm my commitment to improving the culture at NCUA by making it an even better place to work in the years ahead. I also look forward to credit unions’ continued record of outstanding service to their members and communities.

Before the NCUA was established, the federal credit union regulator was housed in several agencies, including the Farm Credit Administration, the Federal Deposit Insurance Corporation, the Federal Security Agency, and the Department of Health, Education, and Welfare.

By the 1970s, the credit union industry had grown rapidly, both in terms of institutions and members. That rapid growth called for independent oversight and leadership. Thus, Congress created the NCUA as an independent regulatory body. Today, the agency oversees approximately 5,200 federally-insured credit unions, with roughly $1.57 trillion in assets, and protects the insured shares of more than 120 million member-owners.

Federal financial institution regulators and state regulators today encouraged financial institutions to meet the financial needs of customers and members affected by the coronavirus.  The agencies recognize the potential impact of the coronavirus on the customers, members, and operations of many financial institutions and will provide appropriate regulatory assistance to affected institutions subject to their supervision.

Regulators note that financial institutions should work constructively with borrowers and other customers in affected communities.  Prudent efforts that are consistent with safe and sound lending practices should not be subject to examiner criticism.

The agencies understand that many financial institutions may face current staffing and other challenges.  In cases in which operational challenges persist, regulators will expedite, as appropriate, any request to provide more convenient availability of services in affected communities.  The regulators also will work with affected financial institutions in scheduling examinations or inspections to minimize disruption and burden.

Agency	Contact	Phone
FDIC	Julianne Fisher Breitbeil	202.898.6895
CFPB	Marisol Garibay	202.435.7170
CSBS	Jim Kurtzke	202.728.5733
Federal Reserve	Darren Gersh	202.452.2955
NCUA	Ben Hardaway	703.518.6333
OCC	Bryan Hubbard	202.649.6870

The Federal Financial Institutions Examination Council (FFIEC) today updated guidance identifying actions that financial institutions should take to minimize the potential adverse effects of a pandemic.

Pandemic preparedness is an important part of a financial institution’s business continuity planning. The guidance provides the Council’s prudent expectations that regulated institutions should periodically review related risk management plans, including continuity plans, to ensure their ability to continue to deliver their products and services in a wide range of scenarios and with minimal disruption.

Sound planning, in advance of imminent risk to particular institutions, helps minimize disruptions to services to consumers, businesses, and communities when such contingencies occur.

Related Link

Agency	Contact	Phone
Federal Reserve	Darren Gersh	202.452.2955
CFPB	Marisol Garibay	202.435.7170
FDIC	Julianne Breitbeil	202.898.6895
NCUA	Ben Hardaway	703.518.6333
OCC	Bryan Hubbard	202.649.6870
SLC	Jim Kurtzke	202.728.5733

ALEXANDRIA, Va. (March 5, 2020) — National Credit Union Administration Chairman Rodney E. Hood issued the following statement in response to an Office of Inspector General investigation into allegations of misconduct in a specific NCUA office: 

In November 2019, the NCUA learned about allegations of misconduct, including allegations of behaviors that may have constituted harassment, which were immediately reported to the Office of Inspector General. Because the accusations involved possible abuse of work time, the Inspector General opened an investigation. The resulting investigative report was issued to the NCUA Board in February 2020. 

I was surprised and disappointed to learn of the activities described in the report. They are unacceptable and do not represent the values of this agency. 

Ensuring a professional work environment for all employees is a top priority. The NCUA is evaluating the organization’s policies and processes for reporting allegations and is taking additional actions. These actions include requesting the NCUA Board create an Office of Ethics Counsel, supplementing our existing anti-harassment training programs, and offering additional third-party counseling services to employees.

Harassment and misconduct have no place at the NCUA. These types of behaviors are unacceptable and will not be tolerated. The agency is committed to creating a culture where we treat every employee with the utmost respect and dignity. 

ALEXANDRIA, Va. (March 5, 2020) – Data on the financial performance of federally insured credit unions for the quarter ending Dec. 31, 2019, are now available (opens new window) from the National Credit Union Administration.

The NCUA’s Quarterly Data Summary Reports include an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators.

The NCUA also makes extensive credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions active as of Dec. 31, 2019, including key metrics.

Chairman Moderates Conversation with Financial Regulators during Freedman’s Bank Forum

WASHINGTON, D.C. (March. 3, 2020) — Before attendees of the Freedman’s Bank Forum (opens new window) today, National Credit Union Administration Chairman Rodney E. Hood offered welcoming remarks and moderated a panel discussion on the importance of minority depository institution preservation.

“The founding of the Freedman’s Bank was more than just a business opportunity. In its original conception, it was an act of humanitarian service to others, rooted in the sense of deep faith and generosity, for the benefit of people who had very little,” Chairman Hood said. “Today, we call it ‘financial inclusion.’ But to the bank’s founders, this was greater than a policy goal: it was a moral and ethical necessity.”

The U.S. Department of the Treasury celebrated the 155th anniversary of the Freedman’s Bank, which was founded as a way of advancing financial and economic security for African Americans and their communities after the Emancipation Proclamation and the end of the Civil War. Hood’s welcoming remarks are available on the NCUA’s website.

In his discussion with Comptroller Joseph Otting; Assistant Secretary for Financial Institutions at the U.S. Department of the Treasury, Bimel Patel; Federal Deposit Insurance Corporation Chairman, Jelena McWilliams; and Federal Reserve Board Governor, Michelle Bowman, Hood addressed topics of significant importance to MDIs and relevant stakeholders, including:

• Initiatives and supervisory strategies agencies are undertaking to complement the work of MDIs in their communities;
• The challenges an evolving financial services marketplace poses to smaller institutions; and
• The benefits of fintech as an opportunity to improve service and expand access to affordable financial services.

At the conclusion of the Treasury event, Chairman Hood kicked off a two-day Minority Depository Forum for credit unions.

The first day includes a one-on-one discussion with Chairman Hood and National Urban League Senior Vice President and Chief Financial Officer, Calvin Harris. The second day consists of several training sessions and breakouts that focus on the NCUA’s 2020 supervisory priorities, strategies for growth, and the NCUA’s initiatives to support minority credit unions.

ALEXANDRIA, Va. (Feb. 25, 2020) – Credit unions can get valuable insights into serving low-income and underserved communities on a March 11 webinar hosted by the National Credit Union Administration’s Office of Credit Union Resources and Expansion.

“Expanding access and bringing affordable financial services to more people are embedded in the credit union ethos of ‘people helping people,’” NCUA Chairman Rodney E. Hood said. “I hope credit union stakeholders will take full advantage of this opportunity to hear from regulators and their industry peers.”

Registration for the webinar, “Financial Inclusion: Pathways to Serving the Underserved,” is now open (opens new window). Participants will be able to log into the webinar and view it on their computers or mobile devices using the registration link. They should allow pop-ups from this website.

The webinar is scheduled begin at 2 p.m. Eastern and run approximately one hour. The NCUA will provide live Twitter updates on @TheNCUA. Participants can submit questions over Twitter anytime during the presentation and in advance by emailing [email protected]. The email’s subject line should read, “Financial Inclusion.” Please email technical questions about accessing the webinar to [email protected].

Representatives from the NCUA and Consumer Financial Protection Bureau will discuss:

• The current landscape of financial inclusion in the U.S.;
• Barriers and challenges to low-income populations for financial inclusion; and
• Innovations in financial inclusion.

Credit union officials will join the webinar to share information about their programs aimed at helping bring greater inclusion and equity to low-income and underserved communities.

This webinar will be closed captioned and archived online approximately three weeks following the live event.

The NCUA’s Office of Credit Union Resources and Expansion supports low-income-designated credit unions and credit unions interested in a low-income designation; minority credit unions; credit unions seeking changes in their charters, bylaws, or fields of membership; and groups organizing to start new credit unions.

Board Member Urges a Dedicated Supervision Program for Consumer Protection

WASHINGTON, D.C. (Feb. 26, 2020) – The mission of America’s credit unions reflects the fundamental principles of democracy itself, National Credit Union Administration Board Member Todd M. Harper said today.

“More than 200 years ago, our founders wrote a Constitution that begins with ‘We the People,’” Harper said. “If you think about it, the credit union mission really tracks the vision of our founders. Immediately after ‘We the People,’ the Constitution speaks about striving to form ‘a more perfect union.’ With the NCUA’s oversight, today’s $1.5 trillion credit union system aims to achieve that laudable goal.”

Board Member Harper spoke to the Credit Union National Association’s Governmental Affairs Conference, covering issues affecting credit union members, including diversity and inclusion, consumer protection, and safety and soundness.  A copy of his prepared remarks is available online.

Prioritizing Consumer Protection and Inclusion

Harper’s four priorities as an NCUA Board member are capital and liquidity; cybersecurity; diversity, equity, and economic inclusion; and consumer protection. In the latter area, he said the NCUA “needs to refine its approach to consumer financial protection” by creating a dedicated supervision program for compliance to address the growth and change in the credit union industry.

“Consumer compliance exams are like regular maintenance on your car,” he said. “Would you go 10 years without getting a tune-up and checking your oil? None of us would. My proposal is about ensuring that a credit union runs smoothly, and if it does not, providing the maintenance needed to optimize performance.”

Similarly, Harper said the NCUA should take the lead in fostering “an environment that promotes inclusion, which will lead to economic dignity for all.”

“Diversity, equity, and inclusion are highly important to the continued health of the credit union system,” he said. “The agency should support the work of small credit unions, minority depository institutions, and low-income credit unions, who are often the ones reaching the underserved and facing the challenges of increased competition and difficulties achieving economies of scale.”

He encouraged credit unions to use the agency’s voluntary credit union diversity self-assessment.

Concerns on the Horizon

Harper said that, looking ahead, succession planning, liquidity, and growing consumer debt are three important issues facing the NCUA and credit unions.

With particular respect to succession planning, Harper said “be prepared” should be credit unions’ motto.

“About one in five credit unions lack CEO succession plans,” he said. “This Hoosier learned young that to ‘be prepared’ is to be a good scout. Succession planning is really about being prepared. A large portion of credit union CEOs and executives are Baby Boomers who will be part of a retirement wave. There is a real need for credit unions of all sizes to focus on succession planning, especially if we want to avoid mergers.”

Harper noted that, despite good economic numbers, “some households are running into trouble.” Consumer debt, after adjusting for inflation, is now higher than its peak during the economic crisis. Meanwhile, delinquencies on credit card payments—consumers owe a record $930 billion on their credit cards—are rising.

Planning for a possible economic downturn should include careful evaluation of new credit risks and quickly mitigating delinquencies, he said.

Harper reminded his listeners of the essential role credit unions play in the economy.

“When credit unions expand access to responsible financial services, our economy will grow,” he said. “Through the ongoing efforts of the NCUA to refine its consumer financial protection program while also supporting small credit unions, minority depository institutions, and low-income credit unions, we can work together to create that more perfect union our founders envisioned.”